Veljko Paunovic: Reading boss hopes to bolster squad despite transfer embargo

Veljko Paunovic has seen talented forward Michael Olise (left) leave Reading for £8m this month

Reading manager Veljko Paunovic is confident he will be able to improve his side before the season begins, despite the club being under an English Football League transfer embargo.

The club made a pre-tax loss of almost £42m in the year to 30 June, 2020.

They have lost £93.1m since 2018 - the EFL limit is £39m over three years.

"I am confident that we will be able to improve the team before the season starts and during the transfer window," Paunovic told BBC Radio Berkshire.

The Royals sold forward Michael Olise to Crystal Palace for £8m last week, with that money going some way to bringing down the club's level of debt.

Reading have also suffered losses after being forced to play matches behind closed doors last season due to Covid-19.

"In the next couple of weeks we are having conversations with the league," added Paunovic from the club's pre-season training camp in Scotland.

"The deadline is going to come soon so we can have the right guidance as to where we stand with it.

"We are expecting when we come back from Scotland we will have a much better and clearer picture about what we can do in terms of bringing in people, in terms of re-signing people."

Under EFL rules any club under a transfer embargo may increase their playing staff to a maximum of 23 players who have played at least one professional game.

However, they can only sign free agents on a maximum of one-year deals or loan players for up to half a season, and are barred from paying transfer or loan fees and subject to budget restrictions.